Should You Buy Insurance for Your Rental Car? 4 Must-Know Reasons
Why is rental car insurance so confusing?
Have you ever stood at a car rental counter, keys nearly in hand, only to freeze when asked: “Would you like to add insurance to your rental?” If you’ve felt unsure or pressured in that moment, you’re not alone.
What happens if you say no—and something goes wrong?
Most drivers assume their personal auto policy or credit card coverage is enough. But when the unexpected happens—like an accident or damage—surprise costs and uncovered claims can ruin your trip and your wallet.
Here’s what you’ll learn in this article.
We’re going to break down the four key reasons why purchasing rental car insurance might be one of the smartest travel decisions you make. From financial protection to peace of mind, we’ll help you determine when it’s worth saying yes at the counter.
1. Your Personal Auto Insurance Might Not Fully Cover You
Rental cars aren’t always fully protected under your personal policy.
While your personal auto insurance may extend some coverage to rentals, it often excludes:
- Loss of use fees (charged when the rental car is out of service)
- Diminished value (loss in resale value after an accident)
- Administrative or towing fees
And if you don’t carry collision or comprehensive on your own vehicle, you likely won’t have that coverage for a rental either.
2. Credit Card Coverage Can Be Limited or Conditional
Relying on your credit card benefits? Read the fine print.
Many credit cards offer secondary rental coverage, meaning it only kicks in after your personal insurance is exhausted. Some even require you to decline the rental agency’s insurance and pay for the rental in full with the card to qualify.
Credit card policies may also exclude:
- Luxury or exotic vehicles
- Rentals over a certain duration (e.g., 15+ days)
- Travel outside your home country
3. You’re Financially Responsible for Every Inch of That Car
Even minor damage can come with a major bill.
From cracked windshields to door dings in the parking lot, rental car companies will pass every cost on to you. This includes labor, downtime, and administrative costs—not just parts.
Purchasing the rental company’s coverage means they waive those charges entirely, leaving you free to focus on your trip, not the paperwork.
4. Peace of Mind While Traveling Is Worth It
Vacations should be stress-free—not legal and financial puzzles.
If you’re traveling out of state or internationally, the laws, liabilities, and logistics become more complicated. Purchasing insurance directly through the rental agency offers clear terms and often quicker resolutions in the event of an accident.
So, Is Buying Rental Car Insurance Worth It?
If you:
- Don’t carry full coverage on your personal vehicle
- Don’t want to risk high out-of-pocket costs
- Are traveling for business or internationally
- Simply want peace of mind during your trip…
Yes, rental car insurance is often worth the investment.
What to Do Next
If you’re unsure whether your current auto insurance covers rentals—or how much coverage you actually need—we can help.
Schedule a quick coverage review with one of agents. We’ll explain what’s included in your policy, what’s not, and help you make confident decisions before your next trip.
